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Formulation of models:
Theorem: A necessary and sufficient condition for the existence of a feasible solution to the transportation problem is that
m i i 1 n j j 1
a b
Example: 1
Example 2:
The Least Cost Method LCM: In this method we look for the minimum cost element of the entire cost matrix. The procedure is given below: i. Locate the cell that has the minimum cost element Cij and allocate the maximum quantity possible by taking Xij = min (ai, bj) ii. If Xij = ai, then delete the ith row and go for a reduced matrix. And if Xij = bj, delete the jth column and proceed with the reduced matrix. iii. Repeat the steps I II till all quantities are allocated.
Example: 4
Example: 5
Cont.
Construct a closed path or loop for the unoccupied cell with largest negative opportunity cost. Start a closed path with the selected unoccupied cell and mark a plus sign (+) in the cell. Trace a path along the rows (or columns) to an occupied cell, mark the corner with ( - ) sign and continue down the column (row) to an occupied cell. The mark the corner with (+) sign and (-) alternatively. Close the path back to selected unoccupied cell. Select the smallest quantity amongst the cells marked with minus sign on the corners of the closed loop. Allocate these values to the selected unoccupied cell and add it to other occupied cells marked with plus sign. Now subtract this from occupied cells marked with minus sign. Obtain a new improved solution by allocating the units to unoccupied cells according to step 5 and calculate the new transportation cost. Further test the revised solution for optimality. The procedure terminates when all dij > 0 for unoccupied cells.
Note: There can be only one plus and minus sign in any given row/column. It is immaterial whether the loop is traversed clockwise or anticlockwise.
Example